How to Increase your Shopify’s Average Order Value in 2019

If you are a Shopify merchant, you’d want to know how to increase your Average Order Value (AOV).

In this article, I am going to talk about Average Order Value and how you can increase yours in 2019.

Concepts, definitions, examples along with practical tips on how to improve your store’s performance — you will find it all here.

Let’s get started.

What is the Average Order Value (AOV)

The Average Order Value is one of the most important metrics for any online store or online business.

It is one of the key metrics for any eCommerce businesses along with other important metrics such as: Number of Orders, Customer Lifetime Value, Total Revenue, Purchase History, Average Order Value and Conversion Rate.

The AOV can help you understand how to improve your marketing efforts and how to increase sales in a seamless way.

It can also help you adjust your pricing strategy and improve other key performance indicators for your Shopify.

Should increasing your AOV be your main goal, your main target?

I’ll cover that later — for now, just keep that your Average Order Value affects your overall performance and should be monitored closely.

One of the main benefits of improving your AOV is that you get to know your customers better — you get a step closer to them, and, as the famous marketer and storyteller Bernadette Jiwa:

Product bundles are a great way to increase the perceived value of a customer’s purchase.

There are several different approaches as to how you can use product bundling.

One of the best ones is to create bundles that cover all of your customers’ potential needs.

What do I mean?

Well, let’s assume that you sell outdoor equipment — everything that someone might need in order to spend a few days outdoors.

Then, you could create and offer a solution that you know for fact cover some of your customers’ basic needs.

In the example below, BioLite does a great job offering a bundle to its customers, knowing that these are things they need and might have bought separately otherwise.

Product bundles are a great way to increase the AOV of your Shopify store and at the same time increase satisfaction for your customers, by offering grouped products that you know they need at a better price.

3) Use minimum order value to offer free shipping or discount

The third tip I have for you is to increase the minimum order value to offer free shipping or a discount.

As I mentioned earlier, minimum order value is the smallest amount that can be ordered in one single delivery.

What you can do is to increase that minimum order value in exchange for free shipping or discounts.

Put simply, if your free shipping threshold in the US for all orders above $75, you can increase that number to $95 —

I know what you are thinking, that the number of order you receive will be decreased.

Well, the number of orders you receive may be slightly decreased, but the quality of customers you get will be higher — this will give your AOV an extra boost.

The same applies to discounts.

If right now you offer a 15% for all orders above $250, you can change that number to 275%.

Yes, you are going to notice a slight decrease in the number of orders you receive, but the average order value will be higher and this will help you increase your total revenue.

Before setting any absolute numbers, you can experiment and find the right spot to adjust your minimum order value accordingly.

4) Use cross-selling and up-selling

The last tip I have for you is to leverage your cross-selling and up-selling efforts.